- The 27 support a review of the Chip Law to focus on critical technologies, talent, and funding.
- The new framework would abandon the 20% quota target and prioritize streamlined approvals and coordinated investments.
- It is proposed to quadruple the investment and study a budget dedicated to semiconductors.
- Broad industry support: SEMI and around fifty companies such as NVIDIA, ASML, Intel, STMicro, and Infineon.
The European Union has taken a coordinated step: The 27 Member States have joined a coalition led by the Netherlands, which calls for an update to the Chip Law. The declaration has already been submitted to the European Commission with the aim of redirecting the bloc's semiconductor industrial strategy toward more concrete priorities.
The initiative, known as Semicon Coalition, aims to shift the focus from a generic market share objective to ensuring key technologies, streamline project approvals, strengthen talent, and better coordinate public and private funding. The movement has support from parliamentary and industry sectors, as well as from national governments.
What is the Chips 2.0 Law and why now?
The EU Chip Law, launched in 2022, mobilized 43.000 million euros to boost manufacturing, design and supply chain monitoring, with a view to achieving 20% of world production semiconductors by 2030. However, the results have not been up to par, and the withdrawal of the large project Intel in Germany It highlighted the difficulties in attracting advanced production.
The European Court of Auditors has stated that, at the current pace, this target is non-viable and places the projection around the 11,7% at the end of the decade. In parallel, recent sector data indicate that the European presence is around 9,2% of the global market, reinforcing the urgency of a more targeted rethink.
What the Semicon Coalition is asking for
The document, signed by all Member States, proposes a Chips 2.0 Law with a practical approach: securing key technologies, Speed up procedures and increase financial muscle throughout the entire value chain, from design to production and packaging.
- Collaborative ecosystem: alliances between industry, SMEs and startups, with effective technology transfer through research.
- Investment and financing: coordination between European and national funds, faster approvals and boosting private capital (learning from the IPCEI).
- Talent: a European semiconductor skills program to strengthen STEM, researcher mobility, and attract specialized profiles.
- Sustainability: cleaner and more efficient processes in terms of water and energy, replacement of hazardous substances, and circularity of materials.
- International alliances: cooperation with like-minded partners for secure supply chains, without losing European strategic autonomy.
Pillars, measures and financing
The coalition suggests replacing the old quota target with three key pillars, with reviewable metrics and close coordination between Brussels, member states, and businesses: Prosperity, Indispensability and Resilience.
- Prosperity: promote a competitive ecosystem that generates value in the automotive, energy, telecommunications and digital services sectors.
- Indispensability: leadership in innovation and control of critical points such as design, materials and manufacturing machinery.
- Resilience: Reliable supply in the face of geopolitical disruptions and tensions, with proprietary capabilities at key hubs.
Among the measures is the fast track for authorizations of infrastructure, a specific budget for semiconductors and improved access to critical manufacturing designs and technologies. It also advocates for align financial instruments European and national projects and to simplify the deployment of strategic projects.
Industry support and outreach
The movement has the support of the SEMI association, which brings together some 3.000 companies, and around fifty manufacturers and suppliers in the chip chain, including NVIDIA, ASML, Intel, STMicroelectronics and InfineonCompanies are demanding more agile execution and regulatory certainty to accelerate investments.
From a political perspective, economic leaders stress that the European industrial strategy must adapt to geopolitical tensions already the strong demand in AI, automotive, energy and defenseThe unity of the 27 reinforces the mandate to move quickly.
Next steps in Brussels
The European Commission must now evaluate the statement and translate it into legislative proposals. There is no closed calendar, but unanimous support from Member States is pushing for rapid progress on a more operational and predictable framework.
In parallel, it is planned negotiations with international partners and with the sector to define R&D projects, strengthen secure chains and design agile financing mechanisms. Analysts point out that success will depend on balancing strategic autonomy and global cooperation without falling into excessive bureaucracy.
The plan on the table includes scaling up the financial effort, with the possibility of multiply the current investment by four in semiconductors and provide more targeted support to segments where Europe can make a difference, from lithography equipment to advanced packaging.
With political momentum and industry support, The Chips 2.0 Law aims to correct the shortcomings from the first framework to turning ambitions into tangible projects, accelerating execution, strengthening essential capabilities and attracting investments that consolidate Europe in the global semiconductor chain.
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